1. Define consumers surplus. 2. Define producers surplus. 3. Explain how trade is most commonly restricted. 4....

Question:

1. Define consumers’ surplus.
2. Define producers’ surplus.
3. Explain how trade is most commonly restricted.
4. Explain how tariffs affect consumers’ and producers’ surplus.
5. Explain how quotas affect consumers’ and producers’ surplus.
6. Describe how tariffs and quotas differ in their effects.
7. Graphically show the net loss of a tariff.
8. Graphically show the net loss of a quota.